News Summary: US consumer spending up in September

News Summary: US consumer spending up 0.8 percent in September, twice as fast as income growth

Associated Press

SPENDING UP: Americans increased their spending 0.8 percent in September, the Commerce Department said Friday. It was the biggest gain since February and a sign of confidence in the economy.

INCOME AND SAVINGS: Income grew 0.4 percent, the biggest gain since March. Still, consumer spending rose twice as fast. Americans financed their additional spending by cutting savings for the third straight month.

OUTLOOK: A pickup in consumer spending helped lift overall economic growth in the July-September quarter. But economists are worried that consumers can't keep spending as fast without better gains in employment and wages.

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